When considering a neighborhood to invest in, look for a homogeneous street pattern. Irregular
subdivisions that conflict with each other don't have through streets and because of that have
frequent traffic ,jams and congestion.
London, England, where streets run into funny alleyways and
where you'll end up at someone's backyard or on a main highway, is as great an example as you'll ever
see.
That city had a number of growth patterns. Subdivisions were laid down without regard to each
other. The streets go one way, and you have to make a jog to get to another. Streets that are not
predictable create all kinds of problems because the traffic flow is not normal.
Boston, Philadelphia, and Baltimore are also like that. They are all old cities that have had unique
and unusual growth. The patterns are such that access is prevented from certain directions. How you
get in and out of a neighborhood obviously is a matter of convenience. On the other hand, if you have
poor street patterns, it might be an advantage to a family with children precisely because it
prevents access and therefore reduces street traffic. It's always nice if a family can live on a cul-de-sac because there is no through traffic, and people are more careful when they drive.
Few years ago, my wife and I joined the Orange County Performing Arts Center in Costa Mesa,
California. Because the center is too far for us to drive for an evening, we started looking around
there to buy a condominium so we could attend the opera and ballet and have a place to stay
overnight. So I went down there and looked around. Then I attended a local National Association of
Real Estate Boards Certified Commercial Investment Members meeting where the marketing director for
the South Coast Metro Association told us about the development that was planned for the community
over time.
She had a bunch of statistics, so I sat there and listened. She talked about how they were going to
build more high-rise office buildings and expand John Wayne Airport in nearby Irvine. After she was
through, I asked what they were going to do about the traffic problem caused by all this planned
development. She said, "We're thinking about widening the streets, or not allowing people to park on
the streets, or changing the stop signs and signals." I told my wife that they were going to create
one of the worst traffic jams in history. The apartments close to this huge, new employment and
commercial center were going to be worth their weight in gold because the people living there would
not have to commute to work. That was when I decided to buy my first condominium in Orange County.
Now I own 30!
